When self-correction works to eliminate an expansionary gap, _____
a. both money wages and real wages increase
b. money wages increase while real wages decrease
c. both money wages and real wages decrease
d. money wages decrease while real wages increase
e. money wages remain unchanged
b
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Suppose the price level increases and real GDP remains the same. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
In the above figure, when the economy is in a long-run equilibrium, real GDP will be
A) $15.5 trillion. B) $16.0 trillion. C) $17.5 trillion. D) $17.0 trillion.
In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita
A) small; no B) small; large C) large; no D) large; small
Refer to the following graph. Which of the following statements is true?
a. Equilibrium is shown at point A.
b. When the price is $13.50 a shortage exists.
c. When the price is $11.50 a surplus exists.
d. If the price is currently $11.00 then the price will fall over time.